Economic meltdown doesn’t necessary means it has something bad for a business. Some of the business are badly affected by market, but some gets benefited as well due to new environment created by economic instability.
Like Job Security or Large Job Cuts. Jet Airlines recently announced to lay off 800 employees. I am sure there are more in same queue given that it might take 2-3 years economies to recover from global meltdown. Some of the top IT companies in India has already decided NOT to do annual increment for their employees.
What would employees do in this situation? Look for job, increase their network. Networking sites like LinkedIn has posted increase in their usage:
You must be thinking what it has to do with Startup, as LinkedIn is not the one. When you start a startup in bad economies:
- You get human resource cheaper than what you would get in the booming economy days.
- Your business proposal will get vetted much more minutely. While a good review does not guarantees (which attribute does??) it but it would make founders think harder and plan more wiser.
- Less competition. Not all dare to start startup in economic stability ( ignoring the fact that tumbling stock markets is not the single most factors in the success/failure of the startups)
Starting a business may still seems like a good idea when economy is good, but that does not guarantees anything. So, when nothing seems to be guaranteed in this world, why not just take plunge without fearing about share market.
